Finding a Contractor for Your FHA Rehab Loan
Like most major purchases and investments, part of the research phase of the mortgage involves reading reviews of the product/service provided.
If you’ve ever checked out product reviews on Amazon.com, you know that these can be a mixed bag and it is sometimes hard to determine which reviews are legit and which are not.
How to Read Customer Reviews of Your Contractor
Go online and research the reputation of the builder or contractor you want to hire. Note the number of reviews they have gotten, and note how many of them are positive and how many are negative.
With the notion in mind that many are less inclined to take the time to write a positive review, and more are inclined to post negative ones, consider the ratio of good to bad reviews. Also, consider the date of the most negative review. Is it fairly recent?
If not you might feel more comfortable using your FHA loan funds to pay a contractor compared to one who has had negative reviews (especially multiple negatives) in the last year or so.
Custom Builder Reviews to Beware Of
It’s never safe to take the review of a product or service seriously when it uses overly positive language, promo-speak, or positive reviews with no details in them. If you can’t find any specific details about the quality of service, it might be wise to move on to a contractor with positive but more specific reviews.
Consider: “I was happy with the work done and am totally satisfied.” This review tells you NOTHING. It’s not to be taken seriously by a serious borrower. Compare that sort of review with this:
“The builder shared a weekly report with us from foundation to completion...Even on his vacation, he told us about the upcoming work. During supply chain delays, he assured us that his builders are moving forward.”
More Detail = More Honest Review
Note the details in the review that are lacking from the first one. You’ll need to read at least 10-15 such reviews to get a more accurate picture of what the builder’s online reputation is really like.
Reading reviews isn’t the only research you can do. If you know any past clients of your chosen contractor you can always ask about their experience and whether or not they would use the same company again.
FHA Loans Have Eligibility Requirements
The U.S. Government Backs Mortgages Through the FHA
Financed Properties Must Meet FHA Minimum Standards
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